Big business
The US sports betting sector continues to go from strength to strength, with Americans betting more than $150bn through legal sportsbooks in 2024. Vermont and North Carolina joined the list of states with legal sportsbooks, the latter in particular getting off to a strong start.
they all have unique approaches to sports betting
It’s always interesting to compare the performance of different jurisdictions, as they all have unique approaches to sports betting. Some have massive tax rates, such as 51% in New York, while others have a single-digit effective rate.
We decided to look at some standout results from last year that could interest readers.
Useful breakdown of figures
Alfonso Straffon, a junk bond trader with a keen interest in gambling, put together an insightful table breaking down the 2024 figures of states that publicly report results:
You’ll notice that some big states like Florida aren’t on the table. That’s because through the state-tribal compact, the Seminole Tribe isn’t obligated to report handle and revenue from Hard Rock Bet publicly.
After analyzing this chart, a few interesting trends popped up when considering the betting activity, win rate, and tax impact across these states.
Interest levels by region
While most people familiar with the US sports betting landscape know New York is the dominant state for handle, registering almost $23bn in 2024, New Jersey residents still bet significantly more per person than those across the border. The handle breaks down to a betting spend of $1,835 per adult in New Jersey versus $1,526 in New York.
Another interesting insight was the North Carolina result, which lags a good bit behind other states in handle despite being the sixth-most populous US state with legal sportsbooks, with just $672 in expenditure per adult in 2024. The sector only launched in March 2024, so it will take time to mature.
Luckiest and unluckiest bettors
If you’re wondering how states stacked up for the sharpest bettors, you might be surprised. Coloradans had the best performance in 2024, with sportsbooks retaining just 7.7% of total handle. Iowa came in a close second with 7.9%.
wooden spoon goes to Louisiana, which had a 12.5% hold rate
These statistics always starkly remind us that the house always wins in the grand scheme of things. In terms of some of the worst-performing bettors by state, the wooden spoon goes to Louisiana, which had a 12.5% hold rate for sportsbooks. Nebraska’s retail operations followed with 12.2% and Washington, D.C. was third with 11.6%.
Success of the higher tax approach
One of the big reasons why almost 40 states have legalized sports betting to date is due to the resulting tax income. New York, for example, took in more than $1bn in 2024 from taxes gross gaming revenue.
51% effective rate in the Empire State appears to not hurt the sector
Many states are looking to increase their taxes, as the hefty 51% effective rate in the Empire State appears to not hurt the sector. Its per-adult tax intake was $70.10, more than double the next closest on the list, New Hampshire, with $31.70.
Illinois enacted a tax hike in July, and its taxes reached $29.50 per adult. Other states like Ohio and Maryland may implement similar changes to raise as much as they can from operators.
The fear for bettors is that this trend could lead to certain sportsbooks leaving the markets as tax rates increase or offering poorer odds to try to maintain their margins.
